A company or a natural person who deals with debt collection in Belgium can try a set of methods in order to recover the debts, either through an amicable procedure or through court procedures. Our lawyers in Belgium can handle the entire debt recovery procedure.
| Quick Facts | |
|---|---|
| Applicable law and regulations |
– Belgian Judicial Code, – The Civil Code, – European Payment Order |
|
Types of debts that can be collected in Belgium |
Unpaid: – invoices, – utility bills, – loans, – fines, – taxes, etc. |
|
Mediation |
Our lawyers can act as mediators in debt collection cases. |
| Amicable collection |
We recommend communication and negotiation between the creditor and the debtor to reach an agreement. |
| Cross-border debt collection |
The European Order for Payment Procedure applies to EU-residing entities (except Denmark). |
| Areas of debt collection |
– commercial debt, – consumer debt, – government debt collection, – medical debt collection, etc. |
| Court actions available for debt collection |
– European Small Claims proceedings, – conciliation proceedings, – summary proceedings, – court litigation |
| Relevant documents |
– contracts, – invoices, – letters, – emails, – payment reminders, etc. |
| Appeals (YES/NO) |
YES |
| Duration of debt recovery through court application (approx.) |
1-2 years |
| Summons for payment |
Our attorneys can issue the document to initiate the debt collection process, providing formal notice to the debtor. |
| Asset seizure |
Requires a court order |
| Types of assets subject to seizure |
– vehicles, – jewelry, – real estate, – artwork, etc. |
| When to start the debt collection procedure |
When the debtor fails to fulfill his/her financial obligations within a specific time period. |
| Assistance |
Our Belgian law firm can assist in debt collection by providing legal advice, negotiating with debtors, and representing you in court proceedings if necessary. |
Table of Contents
What debt collection services do you offer in Belgium?
Our law firm in Belgium works with experts in debt collection who can help you with:
- Out-of-court debt collection: extrajudicial debt recovery used as a first-stage attempt to recover the due amounts;
- Legal procedure for debt collection: the judicial phase, used when the extrajudicial one has failed to produce results;
- Mediation for debt collection: used in those cases in which both parties agree to this alternative dispute resolution method. Mediators in Belgium are regulated by the Federal Mediation Commission;
- The administrative procedure: used for the collection of undisputed debts. For this to be possible, the opposing party must not contest the debt;
- European small claims procedure: used in the case of cross-border claims within the EU when the foreign debt claim does not exceed 5,000 euros. Special conditions apply;
- The European payment order: another option for claiming cross-border debts, possible when the debtor does not dispute their debt and they are located abroad.
What are the usual debt collection stages?
When assisted by our attorneys in Belgium, the process is likely to have the following timeline:
- We notify the debtor of their undue payment. This is part of the extrajudicial phase;
- Our debt collectors send a final notification. If the debtor fails to commence the extrajudicial negotiation process for settling the debt, we will move forward to the judicial phase;
- We counsel the creditor to commence the legal collection phase. After this is decided, our team of lawyers in Belgium will walk you through the court proceedings.
The infographic below offers details about the collection process:
When can I use out-of-court debt collection in Belgium?
The first debt recovery attempt will usually be done outside the court of justice in Belgium. There are no special provisions for this stage of the debt collection process, only the fact that reminder letters will be sent to the debtor. In case of companies, bailiffs can check a debtor’s general situation with the Belgian Companies Register. For financial situations, a fee must be paid.
Debt collection can be conducted by debt collection agencies in Belgium or Belgian attorneys in the early stages. They will contact the debtor by sending dunning letters or by phone actions in order to reach an amicable agreement by deciding on a payment plan.
What courts handle debt collection in Belgium?
The amount owed determines the court that will hear the case. Generally, the following can apply:
- Small claims of no more than 5,000 euros are brought before the Justice of the Peace;
- Claims of over 5,000 euros are submitted to the Commercial Court;
- Other claims can be brought before the Court of First Instance.
Please keep in mind that an evaluation is required before a lawyer in Belgium, such as one from our team, can determine which court will hear your case.
We invite you to watch the following video on the process:
How long does debt collection take in Belgium?
The debt collection process duration varies largely based on the complexity of the case, the due amount, and other factors such as the liquidity of the debtor.
In practice, we advise our clients to expect one or a few months for extrajudicial debt collection (can also depend on whether or not a payment plan is scheduled) and six months to a year (sometimes more) for court collection.
Our lawyers can provide legal representation to both natural persons and legal entities involved in debt collection in Belgium. Contact our team for complete support.